Interview

Finding Growth Stocks in a Shaky Market

Ivy Asset Strategy fund has lightened its equity exposure. The managers still like Sands China and CBS.

Michael Avery and Ryan Caldwell, portfolio co-managers of the Ivy Asset Strategy fund, have lightened up on their stock holdings, concerned about valuations after the big gains of the past couple of years. Equities now account for about 77% of the fund's assets, versus 85% at the beginning of 2013, and the percentage is going lower. Avery and Caldwell, based in Overland Park, Kan., have 13% of their holdings in cash, down from 21% a year ago. Getting asset-allocation decisions right is a tough way to make a living, but the $35.6 billion fund (ticker: WASAX) has done well, especially over the longer term. Its 10-year...